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It has been decided to proceed with the organization of a Canadian General Staff, which will become in time the Canadian Section of the Imperial General Staff. With the foregoing exceptions there have been no important changes in military policy during the period under review.

IMPERIAL GENERAL STAFF.

As regards the establishment in Canada of a Canadian section of the Imperial General Staff, the scheme is explained in a memorandum which accompanied a letter dated War Office, London, December 15, 1908. Both of these documents were included in a Parliamentary Return, which was laid on the table of the House of Commons last session and has been printed and issued as a Blue-book. (Sessional Papers No. 99, 1908-9).

While the general principles enunciated in the memorandum have been accepted, the control of the local station by the responsible minister has been fully safeguarded, as the following extract there from shows:—

‘That while chiefs of local sections keep in close communication with the chief of the Imperial General Staff, they cannot receive orders from him. He will keep them informed as to what are considered, from an Imperial point of view, the correct general principles, and they will advise their governments as to the best method of applying these principles to local conditions, and as to the risk of departing from them. When their advice is not accepted, it will be their duty to carry out whatever their respective governments may order.’

Further, in order to avoid possible misunderstanding and consequent misrepresentations of the views or intentions of the Dominion government, it has been ruled that all communications from the Chief of the Canadian Section to the Chief of the Imperial General Staff, other than those on purely routine or ephemeral questions, must, before being despatched, be submitted to the Minister of Militia for his approval.

Definite assent has been given to the proposition that in order to qualify themselves for employment on the Imperial General Staff, officers must have been educated up to a certain standard of military knowledge, and have become imbued with the requisite uniformity of thought and practice, a result which can best, or only, be obtained by undergoing a course of instruction at a Staff College.

The memorandum hints at the possibility that the English Staff College (which must remain, for many years, the central school of higher military education) may become congested, and as a possible remedy suggests that similar institutions might be established, as in India, in the Oversea Dominions.

The idea of establishing a Canadian Staff College cannot yet be entertained. For a long time to come officers must continue to be sent, subject to the concurrence of the War Office, to the English Staff College; and should this procedure entail any addition to the accommodation at Camberley, or to the number of instructors, the Dominion government would no doubt be willing to contribute its share of the expense, calculated upon an equitable basis.

A cognate question with which the memorandum deals, is the preliminary education of Staff College candidates; for it is realized that they should possess qualifications which will enable them not merely to pass the entrance examinations, but to derive the fullest benefit from the course. This question, so far as it concerns Canada, presents certain minor difficulties as adumbrated in the memorandum; but it is considered that they could best be overcome by an extension of the functions of the Royal Military College, Kingston, and by including among its instructors specially selected officers from the educational branch of the Imperial General Staff.

Finally the memorandum lays stress on what may be gained by a free interchange of officers, and especially upon the good which would result from periodical conferences attended by representatives of the Imperial General Staff from all parts of the Empire. The advantages are indeed obvious; and although the acceptance of the proposals under reference may involve a certain amount of expenditure, the result will amply justify the comparatively trifling outlay.

MOBILIZATION AND DEFENCE.

As regards mobilization, attention was directed in the report for the year ending March 31, 1908, to certain defects which, having regard to the means at disposal, time alone could remedy; and, during the past twelve months, as much progress has been made as the financial situation rendered possible.

Problems connected with defence have been closely studied, the general scheme rearranged to some extent, and the allotment of units revised.

The Halifax defence scheme has been brought up to date, and in commenting on the arrangements made for the protection of the fortress, the Colonial Defence Committee, London, England, have expressed the opinion that the scheme ‘ gives evidence of much careful work and reflects great credit on the. officers charged with the duty of preparing it.*

ORGANIZATION.

In the east, in the four ‘ Commands,’ improvements were during the year introduced in the organization of the troops detailed for service in the field, as opposed to garrison duty. The six territorial divisions, the composition of which has been communicated confidentially to the officers concerned, have been to some extent remodelled, with a view to rendering them more homogeneous than heretofore.

In the west (Military Districts Nos. 10, 11 and 13) steady progress has been made in the expansion of the Militia. During the period under review there have been added to the establishment ten squadrons of cavalry, and twenty-eight companies of infantry.

INTELLIGENCE.

In the Intelligence Division work proceeded on the same lines as formerly. Reports were collated and compiled for the information of the Government; items of information extracted from newspapers and periodicals were indexed and filed; a monthly intelligence diary was prepared; and the annual return of naval and military resources was forwarded to the War Office.

Thanks are due to the officers of the Corps of Guides for the willing assistance they rendered during the year in collecting and communicating intelligence. The reports which they send in are always useful, sometimes very valuable.

MUSKETRY.

The musketry training in camps of instruction was much more satisfactory than in former years. A much larger number of men fired the practices laid down by the regulations than in 1907, and the figure of merit was higher in most cases. The work was systematized, particularly as regards preliminary training, and it is satisfactory to know that a very small percentage of men armed with a rifle attended a camp of instruction in 1908 without learning how to load, aim and fire a rifle with reasonable accuracy.

Much better results are looked for next training, as all ranks are realizing the importance of musketry. The time in camps, available for musketry, is too short, and the accommodation, in some cases, inadequate for the number of men to be trained. This was particularly true of Goderich, Niagara-on-the-Lake, Kingston and Levis. Improvements have been made at Niagara-on-the-Lake and Kingston which should produce better results. The sub-target rifle machine was used with great success at most of the camps, in preliminary training.

‘Judging distance’ practices were carried on in most of the camps and, on the whole, most gratifying interest was shown in this important subject.

The city corps performed better work than formerly, but there are still a number of units that train at local headquarters without any target accommodation whatever. Everything possible is being done to remedy this.

RIFLE ASSOCIATIONS.

The number of Rifle Associations at the end of the year and the membership

were as follows:—

Military…………….No…140…Membership…15,328.

Civilian…………….No…412…Membership…24,018.

Total……………………..552………………….30,346.

The above figures show an increase over 1907-8 of 10 Military Associations (increase in membership, 458), and 45 Civilian Associations (increase in membership, 1,300).

During the year the Militia Council decided to offer a handsome nickel silver salver to the member of each civilian rifle association making the best average in a series of practices prescribed by regulations. This gift aroused a great deal of interest which will, no doubt, increase from year to year.

Judging by the Inspection Reports and Target Practice Returns, the majority of the rifle associations are doing good work, which will be valuable to the country when required.

SIGNALLING.

GENERALLY.

The conditions of signalling in Canada for the year under review, showed a steady advancement and a good healthy competition now prevails. This is specially noticeable in the case of the Artillery, to whom the Canadian Artillery Association awards prizes for the first and second best signallers in each battery and company.

All officers of the Canadian Signalling Corps are now qualified with one exception.

The garrison signalling classes were well attended and showed good results 231 officers, non-commissioned officers and men of the Active Militia (including the Permanent Force) obtained certificates.

At the several camps of Instruction 39 officers and 592 non-commissioned officers and men were trained in Semaphore signalling.

Excellent signalling work was carried out regimentally during the year by all units of the Permanent Force. This should ensure an efficient staff of assistant instructors for the training of the non-permanent militia.

The 77th Wentworth Regiment (rural corps), for the fourth year, was first in order of merit; its work deserves the highest approbation. The 66th Regiment ‘Princess Louise Fusilliers’ and the 8th Regiment ‘Royal Rifles’ were next in order of merit, respectively.

The inspection of the rural corps (cavalry and infantry) at the several camps showed a satisfactory improvement. The following corps were first and second, respectively:—

The Mont St. Louis Cadets, of Montreal, were first, and the Highland Cadet Battalion, also of Montreal, second, in the competition amongst the Cadet Corps.

ACTIVE MILITIA (OTHER THAN THE PERMANENT FORCE). ESTABLISHMENTS.

The establishments for the Active Militia other than the Permanent Force were authorized early in April, 190S, and during the year the following changes took place:—

Cavalry. In Military District No. 10, *Three squadrons in the Province of Saskatchewan, to be known as the ’20th Mounted Rifles’, were authorized. In Military District No. 13, two squadrons in Alberta, to be known as the ‘ 21st Alberta Hussars ‘ were authorized. Also one independent squadron*, and one squadron of Mounted Rifles to form the nucleus of a new regiment, to be known as the ‘ 23rd Alberta Rangers. In Military District No. 11, two squadrons of Canadian Mounted Rifles were authorized, one at Kamlops and the other at Vernon, B.C. In Military District No. 1, the 24th Regiment (3 squadrons) was authorized.

Infantry. The Glengarry Highlanders ‘ was removed from the list of corps of the Active Militia. The 19th Regiment, Military District No. 2, and the 96th Regiment, Military District No. 10, were increased from four to six companies. The 97th Regiment, Military District No. 2, the 53rd Regiment, Military District No. 6, and the 92nd Regiment, Military District No. 7, were increased from four to eight companies. The 98th Regiment, Military District No. 10, and the 102nd Regiment, Military District No. 11, were authorized as four company regiments, the 99th Regiment, Military District No. 10, as a six company regiment, and the 100th Regiment, Military District No. 10, and the 101st Regiment, Military District No. 13, as eight company regiments.

ORGANIZATION.

It is regretted that, owing to lack of funds, the work of organization of new militia units in Military District No. 10, which had been progressing favourably, had to be temporarily stopped, more particularly in view of the fact of the importance of increasing the strength of the Militia in the West proportionately to the increase in population.

STAFF.

The following changes in the Headquarters, Command and District Staffs were made during the period covered by this report:—

Captain E. F. Mackie, D.S.O., Royal Canadian Mounted Rifles, was appointed District Staff Adjutant, Military District No. 13.

It is with much regret that the death of Colonel T. D. B. Evans, C.B., A.D.C., late District Officer Commanding Military District No. 10, which occurred on the 23rd August, 1908, has to be recorded. This Officer served in the Northwest Rebellion, and, also, commanded the 2nd Regiment, Canadian Mounted Rifles during the South African campaign. For his services during the latter war he was mentioned in despatches, received the brevet of Colonel, and was appointed a Companion of the Order of the Bath.

The following British Regulations have been amended and adopted as Canadian books:—

‘ Regulations for Army Ordnance Services,’ Part II.

‘ Regulations for Magazines and Care and Preservation of War Materiel.’

The following Regulations were prepared and issued:—

‘ Standing Orders for the Canadian Ordnance Corps.’

‘ Regulations for Canadian Ordnance Service, Part I.’

‘ Regulations for the Equipment of the Canadian Militia, Part I.’

‘ Standing Orders for the Canadian Permanent Army Service Corps.’

‘ Regulations for Engineer Services, Canada.’

INSTRUCTION.

GENERALLY.

The attendance of officers at the Royal Schools of Instruction has been satisfactory, and the syllabus prescribed carried out in an efficient manner. There is still, however, a tendency on the part of officers to make the periods of instruction in these schools as short as possible and to resort to provisional schools at local headquarters whenever possible.

Five officers and 10 non-commissioned officers successfully passed the Artillery Staff Course held during the year, and 10 non-commissioned officers of the Royal Canadian Regiment qualified as instructors in both the English and French languages.

Ten officers of the Active Militia were attached to the units of the Permanent Force for duty and a ‘long course’ with a view to qualifying for commissions in the Permanent Force.

The results of the promotion examinations of the Imperial Army held in May and November, 1908, were as follows:—

At the May examination 27 officers of the Permanent Force presented themselves, 20 passed and 7 failed (4 in one subject and 3 in more than one subject); 6 officers of the Royal Canadian Artillery wrote on the Artillery subject ‘e,’ all of whom passed. At the November examination 17 officers presented themselves, 15 passed and 2 failed; three officers of the Royal Canadian Artillery wrote on subject ‘e,’ all of whom passed.

Two candidates presented themselves for the literary examination held in May, 1908, by the Board of Civil Service Examiners, but only one passed successfully; at the October examination 7 candidates presented themselves, of whom 4 passed.

Nine officers attended that portion of the ‘long course’ required to be taken at the Royal Military College in the spring of 1908, of whom 7 passed. There were also present during the course 2 officers of the Permanent Force preparing for promotion examination. In the autumn of 1908, 4 officers were present at the Royal Military College, all of whom passed, and, in addition, there were 3 officers of the Permanent Force preparing for promotion examination.

CANADIANSCHOOL OF MUSKETRY.

Owing to the Quebec Tercentenary celebration, the summer course was cancelled. The usual autumn course was carried out with an attendance of 17 officers and 35 non-commissioned officers, of whom 5 officers and 1 non-commissioned officer obtained the ‘Distinguished’ certificate, 10 officers and 31 non-commissioned officers obtained the ‘Musketry’ certificate, and 2 officers and 3 non-commissioned officers failed. The standard of instruction and examination was fully maintained.

The Commandant of the Canadian School of Musketry has reported that the officers and subordinate staff rendered him invaluable assistance; but again advocates the establishment of a permanent musketry staff.

SCHOOLS OF INSTRUCTION.

The number of certificates issued from all Schools of Instruction during the year was as follows:—

Canadian Certificates issued from all Schools of Instruction, from Apr. 1st 1908 to Mar. 31st 1909.

VETERINARY SERVICE.

The Veterinary Service has been improved by the supply of veterinary field chests which are now furnished, fully equipped, to each mounted unit.

ISSUES AND RECEIPTS OF ARMS, AMMUNITION, ETC.

The decentralization of Ordnance work inaugurated by Militia Order No. 16 of 1903, has made good progress. Each District is now practically self contained as regards the issues and receipts of arms, ammunition and ordnance stores generally. When proper accommodation is provided the decentralization of clothing will be taken in hand in order that all requirements (for peace and mobilization) of each Military District may be arranged for through the District Ordnance Office. The procedure in dealing with Contract Demands on account of the estimates of the different Directors at Headquarters has been put on a workable basis in the office of the Principal Ordnance Officer, but this work is greatly hampered by the lack of sealed patterns. The work of sealing patterns goes on daily and it is hoped shortly to have samples or specifications of all articles in use by the Militia.

ARMAMENT.

FIELD ARTILLERY.

The delivery of 36 Q. F. 18-pr. guns and carriages was completed during the year and eight field batteries will be re-armed with this equipment before annual training, 1909; also, limbers and wagons (battery line) for these guns were received.

It is hoped that the re-armament of the whole of the field artillery will be effected before the Training Season of 1912.

A pattern of runner for artillery vehicles, for winter use, has been under trial, and has been satisfactorily reported on. Steps arc being taken for its adoption and manufacture.

HEAVY ARTILLERY.

The order for three four-gun batteries B. L. 60-pr. has been completed, so far as delivery of the guns and carriages is concerned; the limbers are still under manufacture. 97. Some important modifications have lately been introduced in the 60-pr. Carriages and it is proposed to carry these out before the issue of the equipment to batteries. It is, however, anticipated that the equipment will be ready for issue before annual training, 1910.

SMALL ARMS.

The available supply of small arms has been very materially increased by the output of the Ross Rifle factory during the past year.

The issue of the bayonet for the Ross Rifle was commenced during the year and a large number will be in the hands of the troops before the coming training.

The adoption by other countries of high velocity ammunition of small calibre cannot be disregarded. This, together with the possible appearance, in the not far distant future, of a satisfactory form of automatic rifle, may cause a revolution in the present form of small arms which Canada will, in course, have to follow, if she is to remain abreast of modern conditions.

AMMUNITION.

The supply of gun and small arm ammunition, equipment and reserve is, on the whole, satisfactory, a marked increase again being noticeable. The manufacture of Q. F. 18-pr. ammunition has not yet been commenced in Canada; but, with the approaching completion of the machinery, an output may be looked for during the coming financial year.

TECHNICAL INSPECTION OF WAR MATERIEL AND EXAMINATION OF EXPLOSIVES.

Considerable progress was made during the year as regards the technical inspection of field and heavy artillery equipment, and the carrying out of modifications and repairs thereto. Armament artificers visited all batteries armed with B. L. 12-pr. Mark II equipment. The Q. F. 4-7 in. and B. L. 12-pr. Mark I equipments, which were sent to Petawawa for practice purposes, were dealt with by the artificers at the camp. Further work will be carried out during the present year on the various equipments available at Petawawa.

It is proposed to form an Inspector of Ordnance Machinery Section in the Canadian Ordnance Corps as soon as possible.

The periodical and special examination of explosives by Inspecting Ordnance Officers has been arranged for by the division of the 13 Military Districts amongst three qualified Inspecting Officers.

Canada’s Bunker Hill cannon in Citadel, 1907, Quebec City.

ENGINEER SERVICES.

Owing to the large reduction in the funds set apart for these services on account of the decreased revenues of the country, a large amount of work provided for could not be gone on with. Nevertheless, as the following statement shows, extensive Engineer Services were performed during the year, all of which were carried out to the best possible advantage, those at Petawawa being particularly important:—

MILITARY DISTRICT NO. 1.

Military properties were maintained and general repairs and improvements carried out, including the renovation of the Paisley Armoury and rather extensive repairs to the London Drill Hall. Total expenditure. Military District No. 1, 1908-9, $3,486.

MILITARY DISTRICT NO. 2.

A great number of small repairs were carried out in this District, and all military properties generally maintained. An improved water system was laid on the old grounds, Niagara Camp. It is proposed to prepare the new grounds, recently purchased at Niagara, for camp purposes. This will involve the construction of camp buildings, installation of water supply, drainage, arrangements for sanitary requirements, &c. Total expenditure, Military District No. 2, 1908-9, $9,742.

MILITARY DISTRICT NO. 3.

Tete-de-Pont Barracks were renovated and placed in a sanitary and habitable condition, pending the provision of new barracks. The Barriefield Camp Grounds were much improved during the year by additional drainage. Furthermore, a permanent pump-house, installed with a pumping engine, has been provided, and the sinking of an artesian well furnishes an ample quantity of pure water for all purposes. Incidental repairs to Martello Towers, Kingston, were carried out. A number of small repairs were required to maintain the various military properties in this District. Total expenditure, Military District No. 3, 1908-9, $8,495.

ROYALMILITARYCOLLEGE.

All buildings were kept in proper repair, including the salient walls at Fort Frederick, which needed pointing. It is proposed to place a 6-inch water main in the outer and inner inclosures of the college grounds, with hydrants conveniently placed, to afford fire protection to all buildings, as well as for flushing and domestic purposes. Regular tests are made of the water, and in only one instance has the filtered water shown any signs of contamination. The drinking water is, however, sterilized, in addition to being filtered. Total expenditure, Royal Military College, 1908-9, $6,639.54.

MILITARY DISTRICT NO. 4.

All buildings were kept in proper repair. The Lansdowne drill hall has been completely renovated. The Ottawa city water system has been extended to Rockliffe Rifle Range, and was available for the September Militia Camp. Total expenditure, Military District No. 4, 1908-9, $6,731.

MILITARY DISTRICT NO. 5.

All military properties in this District were kept in proper repair. The Pointe-aux-Trembles and Three Rivers Rifle Ranges, as well as the Montreal Drill Hall, Royal Scots Armoury, Engineers Armoury and Victoria Rifles Armoury, were maintained in good condition. Total expenditure, Military District No. 5, 1908-9, $8,681.

MILITARY DISTRICT NO. 6.

A new drainage system was laid at St. Johns Barracks, connecting the Barracks, system with that of the Corporation. At Sherbrooke rather extensive temporary repairs were carried out to the Old Court House which provides quarters for the local militia until the new drill hall is completed. It was found that no convenient site was available at St. Johns for a Rifle Range; therefore, a 30 yards range has been constructed to enable the permanent corps at that Station to carry out their rifle practice. Total expenditure, Military District No. 6, 1908-9 (including the cost of the drainage system, $3,300), $12,377.

MILITARY DISTRICT NO. 7.

A large force of men were steadily employed upon the repairs to the cliff over Dufferin Terrace at Quebec. These repairs are nearly completed. The Fortification Walls were generally repaired. At the Citadel the store building damaged by fire was repaired, and the military “hospital also underwent extensive repairs and is now in use as an office building. The Married Quarters in St. Louis street were renovated and fitted as an hospital. At the Dominion Arsenal, a new gas plant was constructed for the purpose of manufacturing gas for annealing purposes at about one-fourth the price it could be obtained from the city. Two new laboratory buildings for the Arsenal were constructed in the Cove Fields. A macadamized road was constructed from St. Joseph de Levis to Engineers Park and No. 1 Fort. An additional store shed was constructed at Engineers Park, Levis, and two casemates fitted up as caretaker’s quarters in No. 1 Fort. Total expenditure for Military District No. 7, 1908-9, $96,612 (including Dominion Arsenal, Levis Batteries and Terrace Cliff.)

MILITARY DISTRICT NO. 8.

Military properties were kept in proper repair and maintained. At Sussex Camp Grounds, dykes were placed along the river tank, bordering Government property, to protect it. Total expenditure, Military District No. 8, 1908-9, $8,307.

MILITARY DISTRICT NO. 9.

Properties maintained and kept in a proper state of repair, including rather extensive repairs to Middleton and Lunenburg Armouries. General improvements were made at Aldershot Camp, including considerable clearing and seeding of the grounds. Total expenditure, Military District No. 9, 1908-9, $6,513.

HALIFAX GARRISON.

At Halifax Garrison, the fortification works were generally repaired, improvements were made to the Station Hospital, baths and lavatories placed in the Officers’ Block, Wellington Barracks, and baths and sculleries in each of the quarters at Pavilion Barracks. Camp Mess Buildings were constructed at McNab’s Island, and a water supply installed. Total expenditure, Halifax Garrison, 1908-9, $47,700.

MILITARY DISTRICT NO. 10.

Military properties were maintained and kept in a proper state of repair. A water supply was installed for the Winnipeg camp. A permanent reservoir constructed for the water supply at Brandon camp, and a railway siding put in. Total expenditure, Military District No. 10, 1908-9, $5,690.

MILITARY DISTRICT NO. 11.

Military properties were maintained and kept in a proper state of repair. The north end wall of Vancouver Drill Hall put in good repair. A 6-inch B. L. gun from Esquimalt was mounted in the Drill Hall at Victoria, for instructional purposes. Total expenditure, Military District No. 11, 1908-9, $2,490.

ESQUIMALT GARRISON.

Fortifications were maintained in a proper state of repair. Block floor of gun shed at Work Point Barracks renewed. Total expenditure, Esquimalt Garrison, 190S-9, $5,320.

MILITARY DISTRICT NO. 12.

Military properties in this district were kept in a state of good repair. Total expenditure, Military District No. 12, 1908-9, $989.

PETAWAWA.

Water Supply. The construction of water supply systems for drinking, fire protection and sewage disposal, was commenced and is now being completed.

Septic Tank Sewage System. This system for sewage disposal entailed laying some 2| miles of drain pipe, the construction of two septic tanks in concrete and the necessary filter beds, and the construction and fitting of lavatories for all corps on the permanent Camp Grounds. The system is now almost completed.

CampTelephones. Permanent telephone lines were laid to Pembroke, Petawawa village and various points on the Artillery Ranges. All corps headquarters and offices are now fitted with telephone communications, and the system is worked from a central exchange.

Buildings. A slaughter house (with chilling room and ice-houses), also mess buildings for the officers and sergeants, Royal Canadian Dragoons, and men of the Canadian Permanent Army Service Corps were built.

Roads. The metalling of camp roads was commenced, but little progress was made. It is hoped to carry out a certain amount of this work each year.

Railway Platforms. These platforms were extended on both sides of the camp station, and now provide good facilities for loading and unloading stores.

Wharf. A wharf for water transport is now being completed.

Painting Buildings. This work was carried out as time permitted during the year.

ArtilleryRanges. New ranges were cleared and prepared, giving much greater scope for artillery practice.

The following statement gives a list of armouries and drill halls, showing those provided for and those still to be provided for. On reference to this list, it will be seen that there are 349 squadrons, batteries or companies to be provided with armoury accommodation, and bearing in mind the fact that every year this number is being added to by the creation of new units, particularly in the West, it is apparent that an increased annual vote for this service will be required in future, and large amounts of money should not be spent on individual drill halls until all corps are provided with proper accommodation for the protection of their stores and equipment.

EXPENDITURE.

The expenditure for 1908-9 was $6,484,806.40, a decrease of $311,281.85 compared with that for the previous year. The financial statement for the year, which will be found on another page, shows the amount expended under each Vote.

The total amount voted for the year was $6,749,275.22, but owing to certain contractors for clothing, stores, &c, not completing their orders by March 31, 1909, amounts totalling $204,533.81 lapsed. A statement in detail follows, showing the Votes, the expenditure, and the amounts that laps for each service.

The expenditure under certain Votes, such as Salaries and Wages, Maintenance of Military Properties, Transport and Freight, Grants to Associations, Contingencies, Clothing, Stores, &c, was simply to meet the ordinary requirements of these services, and includes nothing special. The Dominion Arsenal spent $275,936, or $140,747 less than the previous year of sums voted by Parliament, but in addition the sum of $58.65S.56 realized in 190S-9 by the sale of scrap iron, which had been accumulating for the past few years, was turned over to the credit of the Arsenal, and used for the purchase of raw material, making the total expenditure for 1908-9 $334,-

Financial statements from the Superintendent will be found on another page. (See Appendix D.)

The expenditure of the Royal Military College was $16,350 in excess of previous year. As, however, some $5,000 of sundry supplies furnished the College in 1907-8 were paid in 1908-9, the real increase was $6,350 only. This may be accounted for by (a) larger number of cadets attending, (b) special expenditure in connection with water and milk supply, (c) additions to the staff and advances in salaries.

Respecting the three large Votes, namely, Annual Drill, Pay and Allowances, and Capital, the following is submitted:—

ANNUAL TRAINING.

The ordinary expenditure on account of Annual Training for the year ended March 31, 1909, which is shown in the following tables, amounted to $1,054,416.74, and the special expenditure in connection with the Tercentenary celebration at Quebec in July, 1908, amounted to $250,379.18, bringing the total expenditure under this vote to $1,304,795.92. This is the largest amount expended in any year for Annual Training, the number of officers and men of the Active Militia who have received not less than 12 days training showing a corresponding increase over any previous year. The details given in the tables which follow show the steady increase which has taken place in the numbers of men and horses trained,

The Tercentenary celebration not only accounts for the direct increase of $250,379.18, but in addition the cavalry units which usually perform their training in the Eastern Townships were sent to Quebec and carried out their 12 days training at Savard Park in order that they might take part in the celebration. This caused an additional expense of $30,000 for this camp which is not included in the direct charges under the Tercentenary account.

Transport charges include a sum of $30,778 which was incurred in the fiscal year ended March 31, 1908, but which could not be paid for out of the appropriations for that year, but this is offset by a deficit of about the same amount for railway claims outstanding on March 31. 1009. Difficulties have been experienced for years past in getting transportation companies to submit their claims before the close of the fiscal year, resulting in these claims being carried over for payment in the ensuing year. Steps have, however, been taken which will, it is hoped, put an end to this undesirable practice.